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The Excise, Taxation and Narcotics Control Department in Punjab has reached an agreement with the Suthra Punjab Authority to begin collecting a cleanliness/sanitation fee from urban areas starting from fiscal year 2026-27. This decision was approved by the provincial cabinet in its 36th meeting on August 6, following the government's approval for a uniform sanitation fee collection model.

The fee varies depending on the size and use of the property, ranging from Rs300 for urban domestic properties up to five marla to Rs4,000 for properties above 40 marla used by large businesses. The Suthra Punjab Authority will pay 1% of the total bills in advance to the excise department through the finance department. The excise department will be responsible for conducting surveys, developing a database, billing, printing, distributing, collecting, reconciling, and providing allied services related to the sanitation fee.

The agreement excludes areas within the jurisdiction of Cantt, DHAs, and private housing schemes, which already have their own cleanliness, solid waste management, and sanitation fee/billing systems. The main objective of the agreement is to establish an efficient, transparent, technology-driven, and accountable mechanism for billing, collection, and reconciliation of the sanitation fee in urban areas.

The excise and taxation department will establish and maintain a comprehensive consumer database, including a unique consumer identification number, while the Suthra Punjab Authority may conduct audits of the excise department's billing, collection, deposits, and expenditures.